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Looking for a Growth Stock? 3 Reasons Why The Trade Desk (TTD) is a Solid Choice
TTDThe Trade Desk(TTD) ZACKS·2025-01-08 18:45

Core Viewpoint - The Trade Desk is identified as a strong growth stock due to its impressive earnings and cash flow growth, along with positive earnings estimate revisions, making it a favorable investment opportunity for growth investors [2][11]. Earnings Growth - The Trade Desk has a historical EPS growth rate of 4%, but projected EPS growth for this year is expected to be 21.6%, significantly surpassing the industry average of 14% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 140.6%, which is substantially higher than the industry average of -3.7%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 21%, compared to the industry average of 14.5% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for The Trade Desk, with the Zacks Consensus Estimate for the current year increasing by 0.3% over the past month [9]. Overall Positioning - The Trade Desk has achieved a Growth Score of A and a Zacks Rank of 2, indicating strong potential for outperformance in the market, making it an attractive option for growth investors [11].